PRINCE2F PRINCE2 Practices Practice Question
A project is forecast to exceed its cost tolerance. What should the Project Manager do first?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Issue an Exception Report to the Project Board
According to the management by exception principle, when a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Close the project immediately
Why it's wrong here
The project should not be closed without Project Board decision.
- ✓
Issue an Exception Report to the Project Board
Why this is correct
The Project Manager must escalate via an Exception Report when tolerances are forecast to be exceeded.
- ✗
Increase the budget to cover the extra cost
Why it's wrong here
The Project Manager cannot change tolerances; that is the Project Board's authority.
- ✗
Continue with the current plan and report at the end of the stage
Why it's wrong here
Delaying escalation violates management by exception.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.